SC asks JP Associates to deposit Rs 2000 crore; shares tumble

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The Supreme Court today told the directors of Jaypee Associates, the holding company of embattled Jaypee Infratech, to deposit an amount of Rs 2,000 crore with its registry by October 27 and asked the interim resolution professional (IRP), a body formed by the National Company Law Tribunal (NCLT), to take over the management of Jaypee Infratech.

Reportedly, his ministry is likely to send a detailed proposal to the finance minister regarding amendment in the Insolvency and Bankruptcy Code (IBC) to safeguard home buyers' interests.

The Insolvency Resolution Professional has been also asked to submit a resolution plan indicating protection of interests of flat buyers and creditors within 45 days. Jaypee Infratech has defaulted on Rs526.11 crore of loans outstanding to IDBI Bank.

However, Attorney General K.K. Venugopal had suggested to the court that the IRP be given more time to formulate a plan so that everybody's interest is taken care of.

The Supreme Court was hearing state-run IDBI's plea seeking restoration of insolvency proceedings against Jaypee Infratech that was put on hold by the court on the plea of flat buyers who fall in the category of unsecured creditors.

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The court said in a statement, "We understand their plight".

However, the Supreme Court on September 4 stayed insolvency resolution proceedings against Jaypee Infratech on a plea by home buyers of its projects in Noida.

Sharma's plea sought a stay on the NCLT order, and urged the court to conduct a forensic audit of Jaypee Infratech and Jaiprakash Associates.

Around Rs 25,000 crore worth of money of flat buyers and others has been at stake with around 32,000 persons having their undelivered flats in various projects of Jaypee Infratech.

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